How Does UAE Excise Tax Return Filing and Payment Work?

The Excise Tax Return Cycle in the UAE

Every registered excise taxable person in the UAE must file an excise tax return for each tax period and pay any excise tax due by the prescribed deadline. The tax period for excise tax is one calendar month. Returns must be filed and payment made by the 15th day following the end of the tax period, through the FTA’s EmaraTax portal at eservices.tax.gov.ae. Where the 15th day falls on a weekend or public holiday, the deadline shifts to the next working day.

There is no exemption from filing. A registered taxable person who has had no excise activity in a given month must still file a nil return by the deadline. Failure to file, even where no tax is due, constitutes a compliance failure subject to administrative penalties.

What the Excise Tax Return Contains

The excise tax return summarises all excise-related activity during the tax period and calculates the net tax payable. The return captures the following information:

• Excise goods imported: the quantity and excise price of all excise goods imported into the UAE during the period, and the excise tax due on each category
• Excise goods produced: the quantity and excise price of all excise goods produced for consumption in the UAE during the period
• Excise goods released from designated zones: goods released from a designated zone or licensed warehouse during the period, where excise tax has not previously been settled
• Excise goods stockpiled: where goods are stockpiled in the course of business and the excise tax has not previously been paid
• Deductible excise tax: excise tax previously paid that is eligible to be deducted in the current period, for example where goods have been exported or where tax was paid on goods that were subsequently returned

The net excise tax payable is the total excise tax due on all taxable activities for the period, less any deductible excise tax. Where deductible tax exceeds the tax due for a period, the excess carries forward to the next return rather than generating an immediate refund, unless the taxable person submits a specific refund application to the FTA.

The EmaraTax portal pre-populates certain fields from import declarations already submitted through the customs clearance process. The taxable person is responsible for reviewing all pre-populated data, correcting any errors, and adding any activity not automatically populated before submitting the return.

How Importers File Excise Tax in the UAE

The filing and payment obligations differ between registered and non-registered importers, reflecting their different relationships with the excise tax system.

Registered Importers

A business registered for excise tax that imports excise goods into the UAE submits an import declaration through EmaraTax at the point of importation. The import declaration details are automatically linked to the importer’s Tax Registration Number and populated into the monthly excise tax return. Customs clearance of the goods takes place before payment of the excise tax; the tax liability is settled when the monthly return is filed and paid by the 15th day of the following month.

Non-Registered Importers

Where a person imports excise goods but is not registered for excise tax (typically because they do not import on a regular basis and have been exempted from registration by the FTA), they must complete a separate import declaration through EmaraTax. The declaration calculates the excise tax liability based on the FTA’s standard excise price list for the relevant goods. Where the relevant goods are not on the standard price list, the importer must provide a self-declared excise price. For non-registered importers, excise tax payment is required before Customs clearance takes place, not after. The goods cannot be released until the excise tax has been paid.

How to File an Excise Tax Return Through EmaraTax

The return filing process through EmaraTax follows these steps:

1. Log in to EmaraTax at eservices.tax.gov.ae using a UAE Pass or FTA account credentials.
2. Select the taxable person profile for the registered excise taxable entity.
3. Navigate to the Excise Tax section on the dashboard and open the current period’s return.
4. Review pre-populated data from import declarations submitted during the period and correct or supplement as necessary.
5. Enter all taxable activities for the period not already captured through customs declarations: production, stockpiling, designated zone releases.
6. Enter deductible excise tax amounts, supported by the required documentation for each deduction category.
7. Review the calculated net excise tax payable and confirm the figures are accurate.
8. Submit the return and proceed to payment through the EmaraTax payment gateway. Accepted payment methods include bank transfer and card payment through the portal.

The FTA issues a confirmation of return submission. The taxable person should retain this confirmation alongside the return data and all supporting records for the period.

Excise Tax Payment Mechanics

Payment of excise tax due is made through EmaraTax at the point of return submission. The portal redirects the taxable person to the integrated payment gateway where payment can be completed by bank transfer or electronic card payment. Once payment is processed, a payment confirmation is issued and recorded against the taxable person’s account on EmaraTax.

Where excise tax has been overpaid in a period, the excess is credited to the taxable person’s EmaraTax account and can be offset against future liabilities. A refund of the excess may be claimed by submitting a refund application through EmaraTax, subject to FTA review and approval.

Penalties for Late or Non-Filing of Excise Tax Returns

The consequences of missing the excise tax return deadline or failing to file are significant. Under the UAE Tax Procedures Law and the penalty framework restructured by Cabinet Decision No. 129 of 2025, penalties for excise tax non-compliance include:

• Late filing penalty: a fixed administrative penalty for failure to submit the excise tax return by the deadline
• Late payment interest: at 14% per annum on the outstanding excise tax amount from the due date, under Cabinet Decision No. 129 of 2025
• Repeat non-compliance: where a taxable person repeatedly fails to file, the FTA may escalate enforcement including tax assessments, asset collection action, and in cases of deliberate evasion, referral for criminal prosecution

Penalties apply from the date the obligation arose, not the date the FTA discovers the non-compliance. A taxable person who identifies a missed filing or underpayment should file a voluntary disclosure through EmaraTax promptly. Voluntary disclosure before the FTA identifies the issue typically results in a reduced penalty compared to the penalty assessed after an FTA audit or investigation.

Record-Keeping Obligations for Excise Tax

All excise taxable persons must maintain complete records of their excise activities to support the returns filed. Required records include:

• Import declarations and customs documentation for all imported excise goods
• Production records for excise goods manufactured in the UAE
• Stockpile records with audited documentation where goods are stockpiled in the course of business
• Designated zone transfer records and warehouse keeper documentation
• Export documentation (official evidence, commercial evidence, and shipping certificates) where deductions or exemptions are claimed on exported goods
• Excise price calculations and retail price lists used as the basis for tax calculations

Records must be retained for a minimum of 5 years from the end of the relevant tax period. Under the 2024 amendments to the Executive Regulation, failure to maintain audited records for stockpiled goods may result in the FTA classifying the entire inventory as excess excise goods subject to full excise tax liability.

Frequently Asked Questions (FAQs)

How Farahat & Co. Can Help

Farahat & Co. assists businesses across the UAE with excise tax return preparation and filing through EmaraTax, excise tax calculation, deductible tax reviews, voluntary disclosures, and FTA audit support. As an FTA-registered Tax Agent, our team can interact directly with the FTA on behalf of registered clients and manage the full monthly excise tax compliance cycle.

Contact Farahat & Co. today to discuss your excise tax return filing and compliance requirements.